World News for Students of English

23-10-2023 07:00

Netflix’s efforts to curb password-sharing likely increased its subscriber count by around 6 million during the third quarter.

The company, which is the only major streaming platform that’s profitable, is expected to announce potential price hikes when it reports earnings. Unlike its competitors, such as Disney, Netflix hasn’t raised its ad-free subscription prices and instead focused on limiting password-sharing outside of households. Some analysts have compared Netflix to a utility due to its widespread usage. They believe the challenge for Netflix is to sustain growth as it matures. A recent strike by Hollywood actors may impact Netflix’s pricing strategy once it concludes.

The Writers Guild of America recently reached a new contract with major studios, but Netflix, with its strong content library and international presence, managed the strike well. In the future, Netflix is anticipated to raise prices for its ad-free options to encourage more users to choose these plans, as most new subscribers following the password crackdown have preferred them over ad-supported plans.

Difficult words: curb (to restrict or control), utility (an organization that supplies the community with electricity, gas, or water), mature (to develop fully).

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